India has secured a cargo of Iranian liquefied petroleum gas for the first time in several years, in a significant pivot driven by the ongoing disruption to Gulf energy supply chains caused by the Strait of Hormuz crisis. Indian importers turned to Iranian LPG to bridge short-term supply gaps after rising freight costs, vessel unavailability, and operational uncertainty from traditional Gulf suppliers left domestic inventories under acute pressure.
The purchase marks a notable development in the India-Iran energy relationship, which has been largely dormant in recent years due to a combination of geopolitical caution and US sanctions concerns. The urgent domestic supply situation created by the Hormuz closure — which has reduced India’s LPG import volumes by an estimated 46 per cent in March — appears to have provided sufficient commercial and strategic justification for the procurement.
Five Indian LPG Tankers Still Stranded at the Strait
Even as India diversifies supply sources, five Indian-flagged LPG tankers loaded with Gulf cargoes bound for India remain stranded near the Strait of Hormuz, unable to transit the waterway due to ongoing security risks and operational uncertainties. Industry sources say the vessels — loaded and ready to sail — have been waiting for confirmation of safe passage, adding to the frustration of importers and downstream distributors who need the cargoes to arrive urgently.
The continued stranding of loaded tankers highlights the tension between India’s diplomatic assurances from Tehran — which have allowed some vessels to transit — and the practical reality of operating in a conflict-affected maritime environment where vessel masters and shipping companies must make real-time safety assessments. Not every ship captain is willing to take the risk even when diplomatic clearance has nominally been granted.
No Incidents in 24 Hours: Shipping Ministry
On a reassuring note, the Ministry of Ports, Shipping and Waterways confirmed that no incidents involving Indian ships or seafarers were reported in the 24-hour period ending Thursday. Approximately 540 Indian crew members across vessels operating in and around the Persian Gulf are accounted for and safe, the ministry said, adding that it is maintaining close coordination with shipping companies, port authorities, and international agencies to monitor developments in real time.
India’s Multi-Source LPG Strategy Crystallises
The Iranian LPG procurement is the latest piece of a rapidly diversifying India LPG supply picture that now encompasses cargoes from the United States, Argentina, Russia, and now Iran — a remarkable geographic spread that would have been unthinkable just weeks ago. India currently imports approximately 60 per cent of its LPG consumption, making supply continuity a matter of direct household and economic concern. The government’s willingness to tap Iranian supply — despite the political sensitivities — underscores how seriously New Delhi is treating the energy security dimensions of the current crisis. India has also locked in approximately 60 million barrels of Russian crude for April delivery, continuing its strategy of maximising supply diversification and price advantage in an elevated oil market.
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